Development prioritization
through analytical hierarchy
process (AHP) - decision making
for port selection on the one
belt one road
Omar Khalid Bhatti
Department of Business and Management, Istanbul Medipol Universitesi, Istanbul,
Turkey and Department of Business Administration, Iqra University,
Islamabad, Pakistan, and
Ali Raza Hanjra
ITTMS (CAREC-RIBS) Program, Pakistan Customs, Government of Pakistan,
Islamabad, Pakistan
Abstract
Purpose – This paper aims to attempt to investigate if the now-existing upstream Sost Dry Port in Gilgit-
Baltistan and the prospective midstream Havelian Dry Port in Khyber Pakhtunkhwa, both part of One Belt
One Road (OBOR), are expected to compete against or complement each other in terms of port efficiency and
location, and which of the two ports should first be developed in the wake of uninterrupted logistics flow of
cargo on the Economic Corridor.
Design/methodology/approach – Analytic hierarchy process (AHP) has been used for multi-criteria
decision making by the stakeholders. Five main criteria for transhipment port selection, ranging from port
location, port efficiency, intermodal connectivity, port costs and cargo volume were used with three sub-
criteria each.
Findings – This study demonstrates the results that favour physical infrastructural development initiatives
prioritized for the Sost Dry Port in view of its strategic location as the upstream supply chain node on the
Economic Corridor, imparting efficiency to the logistics flow.
Practical implications – Results of this study may assist policymakers in achieving goals like enhancing
trade facilitation, reducing congestion and increasing cargo security on OBOR.
Originality/value – To the best of the authors’ knowledge, this is the first study of its kind that analyzes
priority for immediate development intervention for either Sost or Havelian Dry Port, both located on CPEC –
OBOR supply chain.
Keywords Logistics, AHP, CPEC, OBOR, Trade facilitation
Paper type Technical paper
1. Introduction
1.1 One belt one road
China has initiated a revival of the Silk Road based on land and maritime logistics and
transportation networks connecting Asia, Central Asia, Europe and Africa through “One
Belt One Road (OBOR)” thereby creating new markets for Chinese companies and tackling
industrial overcapacity (Summers, 2016; Amir, 2016). This vision reflects China’s desire to
Analytical
hierarchy
process
121
Journal of Chinese Economic and
Foreign Trade Studies
Vol. 12 No. 3, 2019
pp. 121-150
© Emerald Publishing Limited
1754-4408
DOI 10.1108/JCEFTS-04-2019-0020
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